I am going to share how some customers are using Lytica tools to save money; big money. If you buy or sell electronic components, you need our tools. Anyone requesting or receiving quotes for components today needs Component Cost Estimator (CCE). Clients are using CCE to verify quotes when received. It is fast (analysis takes about […]
Price Negotiation: Don’t Walk in Blindfolded Read More »
Opportunity for cost reduction exists in all companies. Lytica’s analytic tools were conceived to focus on cost reduction for commercial component purchases but are also proving effective in reducing overhead activity associated with their cost reduction. Our customers are finding that they can significantly reduce the amount of activity required to get significant savings by
Cost Reduction Doesn’t Have to Be Painful Read More »
It stands to reason that, within a set of components, some would have better and others worse than a sweet-spot price. “Sweet-spot” here means an appropriate, fair-market price level for the purchaser. If you normalized the sweet-spot prices so that different components could be compared, you would expect a distribution showing variance around that value.
Everyone Has Some Bad Electronic Component Pricing Read More »
Having the world’s largest independent database of current electronic component pricing gives me a unique perspective on pricing. Having developed the prediction algorithms used inFreebenchmarking.com and Component Cost Estimator — applications that accurately predict what individual companies should be paying for components — I am happy to see my customers saving millions of dollars by
5 Ways to Reduce Component Costs Read More »
Maybe I’m fixated on cost and competitiveness, but over Christmas, two things happened that drove me to ponder these themes. The first is that I was given a Boxee Box as a gift; the second is a technology, entertainment, and design (TED) lecture that I heard via Boxee by an incredible 19-year-old woman named Eva
Why I Am Fixated on Cost & Competitiveness Read More »
There are times when I wonder why companies have purchasing departments. Wouldn’t it be a great cost reduction to get rid of the overhead for this group and just let designers pick suppliers and set component pricing? A demand planner could interface with contract manufacturers that would keep costs competitive and take care of all
Turning Ordinary to Great Read More »
Based on some of the replies to my blogs and conversations with customers, I have noticed that some individuals are confused over single and sole sourcing. I will start with definitions and then share some observations and thoughts on the subject. Sole Sourced: a component for which there is only one manufacturer capable of making
Thoughts on Single and Sole Sourced Components Read More »
The results are in from the EBN poll on the Price-Supplier Equation. Fifty-five percent of respondents believe that the premium paid for being single sourced is greater than 10 percent, and more than half of these believe it is greater than 15 percent. This is a significant hike on cost and an unnecessary supply chain
Single Source Premium: Unnecessary Cost Read More »
The results of a recent EBN poll regarding the relationship between component price and volume are in — with strong support (75 percent) for the idea that a relationship exists. As reported in my blog a few weeks ago, this is the complete opposite of what I observe using freebenchmarking.com data. Faced with this dichotomy,
Price vs. Volume Poll: The Results Are In Read More »
I am a believer in using second sourcing as a primary security-of-supply strategy. I know some believe that close relationships with a single manufacturer can yield better overall value and better supply security, but I am not of that school. My position is that two sources provide leverage by creating competition, which is good for
Purchasing: Risks in ‘Virtual’ Second Sources Read More »
